Minister Bibeau announces new programs that deliver full and fair compensation for chicken, turkey and egg farmers

OTTAWA, ON, April 13, 2021 /CNW/ - Today, the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, announced details of two new programs designed to help drive innovation and market development for Canada's 4,800 chicken, turkey and egg farmers. These programs, totaling more than $691 million over ten years, respond directly to requests from producer associations and provide full and fair compensation for market impacts from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The Poultry and Egg On-Farm Investment Program will provide close to $630 million over ten years to support poultry and egg farmers through on-farm investments. Producers will be entitled to an amount proportional to their quota holdings. Eligible projects are anything that helps a producer modernize, become more competitive and adapt to changing consumer preferences. This includes new barn construction or upgrading equipment like feeding, watering, lighting, ventilation, heating, and comfort systems that will promote energy efficiency and reduce environmental footprint. The Government of Canada will contribute up to 70% of the project cost, a ratio increasing to up to 85% for young farmers to help ensure a strong future for Canada's farms. The intake of applications for this program will launch later this spring.

Funding will be distributed starting in 2021-22, and will be allocated as follows:

• $347.3 million for chicken producers;
• $59.6 million for turkey producers;
• $134 million for egg producers; and,
• $88.6 million for broiler hatching egg producers.

The Market Development Program for Turkey and Chicken will provide $36.5 million for the Turkey Farmers of Canada and $25 million for the Chicken Farmers of Canada over ten years. This funding will help promotional activities that differentiate Canadian-made products' reputation for high-quality, safe and sustainably farmed food that adheres to strict animal welfare standards. Funding will be distributed to the national industry organizations, who will submit a multi-year strategy to Agriculture and Agri-Food Canada for approval. The intake for applications from these organizations launches April 13, 2021.

Quotes

"The Government is delivering on our commitment to compensate our supply-managed farmers for losses from recent trade agreements. These investments will help ensure continued growth and prosperity for our poultry and egg farmers, who help keep Canada's rural communities strong and vibrant. We have worked hand-in-hand with industry to ensure they have the full and fair support they need to continue to keep our family farms thriving and our grocery shelves full of good Canadian products."
-       The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food

"This announcement of programing is welcomed and a positive step by the government in support of turkey farmers and supply management in Canada. These programs, asked for by our industries, will help us grow our customer base and the domestic turkey market, and through on-farm investment enhance long-term competitiveness in preparation for increased imports under the CPTPP. We very much appreciate this commitment by the Federal Government."
-       Darren Ference, Chair, Turkey Farmers of Canada

"Today's announcement offers new opportunities for our farmers to reinvest in their operations and plan for the future as they navigate the long-term market losses under the CPTPP agreement. By building on current practices, egg farmers will continue to be at the forefront of the sustainable agriculture movement and drive new levels of innovation and efficiency. Egg Farmers of Canada thanks the government for its continued and vocal support for supply management and our strong, domestic agriculture sector."
-       Roger Pelissero, Chair of Egg Farmers of Canada

"Canada's chicken farmers deliver the highest quality products to Canadians. The Poultry and Egg On-Farm Investment Program and the Market Development Program being announced will allow farmers to plan for the future, adapt to changing consumer preferences, and contribute to Canada's goals of sustainably growing our agricultural sector. We'd like to thank the Government of Canada for upholding its commitment to full and fair compensation for poultry and egg farmers."
-       Benoît Fontaine, Chair, Chicken Farmers of Canada

"Canada's over 240 hatching egg producers are pleased to receive additional details with today's announcement on the Poultry and Egg On-Farm Investment Program. This program, totaling more than $88 million for our sector, will mitigate the market impacts from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership by supporting investments in our farm operations including improving efficiency, productivity, and competitiveness. We look forward to continue working with the government on these types of programs to support a strong and thriving Canadian hatching egg sector that contributes to Canadian food security and sustainability."
-       Brian Bilkes, Chair, Canadian Hatching Egg Producers

Quick Facts

• The four supply-managed poultry and egg sectors (chicken, broiler hatching eggs, turkey, and eggs) generated $4.9 billion in farm cash receipts in 2020, 6.8 percent of all farm cash receipts in Canada. According to industry, Canada's poultry and egg sector supports more than 140,000 direct and indirect jobs.
• The Government of Canada remains committed to engaging the sector on full and fair compensation for the Canada-United States-Mexico Agreement (CUSMA).
• As producers and processors depend on each other to be successful, the Government of Canada also remains committed to addressing the impacts of recent trade agreements on processors.

Backgrounder
Compensation Programs for Chicken, Turkey and Egg Producers

The Poultry and Egg On-Farm Investment Program and Market Development Program for Turkey and Chicken are delivering on the Government of Canada's commitment to provide full and fair compensation to supply-managed sectors for market access concessions made under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Poultry and Egg On-Farm Investment Program

The Poultry and Egg On-Farm Investment Program will help Canadian poultry and egg increase their competitiveness over the long-term and become more environmentally sustainable and efficient by:

• facilitating producer-made investments for on-farm modernization
• supporting greater efficiency and competiveness
• helping producers meet changing requirements for production practices
• supporting the sector in better responding to future market challenges

The program will provide non-repayable contributions close to $630 million over 10 years. The funding allocations include:

• $347.3 million for chicken producers;
• $59.6 million for turkey producers;
• $134 million for egg producers;
• $88.6 million for broiler hatching egg producers.

The intake of applications for the Poultry and Egg On-Farm Investment Program will launch later this spring. Every producer will be entitled to an amount proportional to their quota holdings on January 1, 2021, which they can apply whenever they are ready to invest. Should applications exceed the program's annual funding allocation, they may be approved to be reimbursed in a future fiscal year in order to avoid delaying the start of the project. Projects will be cost shared between Agriculture and Agri-Food Canada (AAFC) and the applicant with AAFC contributing a maximum of 70% of the project cost.

Youth and young farmers are the future of Canada's agriculture and agri-food sector. In order to assist Canadian young farmers to succeed, AAFC will use a cost share ratio of up to 85% for farmers who were 35 years of age or under on January 1, 2021.

The Poultry and Egg On-Farm Investment Program will consider eligible costs retroactive to the announcement of support for supply-managed sectors made in Budget 2019 (March 19, 2019). The program will allow applicants to apply for eligible activities that started on or after March 19, 2019 ("retroactive activities"). While the program allows for such retroactive activities, the applicant assumes the risk of not being reimbursed should the project not be approved or the costs deemed ineligible.

Under the Poultry and Egg On-Farm Investment Program:

• An average chicken producer, who produces 448,202 kilos per year, will have access to up to $122,411
• An average turkey producer, who produces 302,299 kilos per year, will have access to up to $114,195
• An average egg producer, who produces 654,772 dozen eggs per year, will have access to up to $111,203
• An average hatching egg producer, who produces 3,413,983 eggs per year, will have access to up to $375,297

The program has been developed based on extensive consultations with industry and AAFC is working to ensure that sufficient resources are in place to meet program demand.

Market Development Program for Turkey and Chicken

The Market Development Program for Turkey and Chicken will help promotional activities that differentiate Canadian products and producers from competing imports, and leverage Canada's reputation for high quality and safe food.

Applicants will submit a multi-year strategy (maximum five-years) to AAFC for approval. Funds are to be used for:

• sector-wide advertising and promotion;
• promotional activities that build public trust in Canadian turkey and chicken products;
• market research;
• development and/or expansion of target audiences;
• increasing delivery of current market development activities;
• encouraging product development, product testing and research into new innovative processing and packaging technology at the primary and further processing level;
• adapting current branding to meet changing consumer expectations.

Over the next ten years, the program will provide over $61 million to the turkey and chicken sector. Funding will be allocated as follows:

• $36.5 million for the Turkey Farmers of Canada; and,
• $25 million for the Chicken Farmers of Canada.

Marketing activities will be cost shared with industry with AAFC providing 80% funding for eligible project costs. AAFC may provide up to 90 % funding for specific projects aimed at promoting inclusiveness and diversity in the market development activities supported by the program. The program and funding allocations are based on feedback received through industry consultations that took place earlier this year.

Additional Links

Government of Canada announces investments to support supply-managed dairy, poultry and egg farmers
Poultry and Egg On-Farm Investment Program
Market Development Program for Turkey and Chicken
Dairy Direct Payment Program

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SOURCE Agriculture and Agri-Food Canada